The HR Function – Are Key Performance Indicators Required?

Posted by Roxanne Chugg

Whether you’re working as part of an HR Department or individually as an HR Professional, the goal is the same. The human resource functions primary objective should be to help the organisation achieve its business goals by attracting and retaining the right people, training them to build their capability and managing them using consistent processes that engage and reward.

With this in mind, identifying Key Performance Indicators is essential to enabling the measurement of the human resource functions performance. The mistake that is often made when identifying KPI’s is selecting measures that fail to provide any useful information. The key is to select KPI’s that not only provide useful information, but information that is actionable.

Human Resource KPI’s can be retrospective or future focused, it is important to have a balance between the two and ideally those selected should track the human resource functions progress in achieving specific business objectives.

An example of a retrospective KPI might relate to ‘the average number of absenteeism days’ this information in isolation is of little use, but if paired with a future focused KPI measuring ’employee engagement’ a cause and effect analysis can translate into action to progress the organsation’s strategic objectives.

As a result of the KPI’s measured, any required action should be captured in an action plan, what needs to be done, by whom and when to achieve the desired outcomes. Identifying useful KPI’s when working in HR to measure performance is essential to success.